HomeMy WebLinkAboutItem 3.1 - 1767 East Bay Community Energy Status Update
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STAFF REPORT
CITY COUNCIL
DATE: January 9, 2018
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
East Bay Community Energy Status Update
Prepared by: Shannan Young, Environmental Coordinator
EXECUTIVE SUMMARY:
The City Council will receive a report from East Bay Community Energy (EBCE),
Alameda County’s new community-governed power supplier, on the impending launch
of EBCE.
STAFF RECOMMENDATION:
Receive the report.
FINANCIAL IMPACT:
There is no fiscal impact to the City of Dublin. This is an informational item.
DESCRIPTION:
East Bay Community Energy (EBCE) is a Community Choice Aggregation (CCA)
program which is committed to providing electricity generated from a high percentage of
renewable sources such as solar, wind and geothermal. Authorized by California law in
2002, CCA enables cities and county governments to pool the electricity demand within
their jurisdictions in order to procure or generate electrical power supplies on behalf of
the residents and businesses in their communities.
The City Council, at their November 15, 2016 meeting, adopted Resolution 168 -16
(Attachment 1) approving an agreement to participate in the East Bay Community
Energy Authority Joint Powers Agency for a CCA Program in Alameda County and
approved an Uncodified Ordinance (Attachment 2) authorizing the implementation of a
CCA program in the City of Dublin.
EBCE Staff will provide an update on the CCA program for City Council.
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NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None. EBCE will provide notification to new customers as they are enrolled; two notices
will be provided prior to enrollment, and two notices will be prov ided subsequent to
enrollment.
ATTACHMENTS:
1. Resolution 168-16
2. Ordinance 13-16
RESOLUTION NO. 168 —16
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AN AGREEMENT TO PARTICIPATE IN A JOINT POWERS AGENCY FOR
COMMUNITY CHOICE AGGREGATION PROGRAM IN ALAMEDA COUNTY
WHEREAS, the City of Dublin has demonstrated its commitment to an environmentally
sustainable future through its policy goals and actions, including energy reduction, clean energy
programs, and the expansion of local renewable power supply; and
WHEREAS, the City has adopted a Climate Action Plan to reduce greenhouse gas emissions;
and
WHEREAS, Community Choice Aggregation (CCA) is a mechanism by which local
governments assume responsibility for providing electrical power for residential and commercial
customers in their jurisdiction in partnership with local commercial energy purveyors and owners of
transmission facilities, which in the case of the City of Dublin is Pacific Gas & Electric Co.; and
WHEREAS, CCA has the potential to reduce greenhouse gas emissions related to the use of
power in the City of Dublin; provide electric power and other forms of energy to customers at a
competitive cost; carry out programs to reduce energy consumption; stimulate and sustain the local
economy by developing local jobs in renewable energy; and promote long -term electric rate stability
and energy security and reliability for residents through local control of electric generation resources;
and
WHEREAS, Staff has examined and identified Community Choice Aggregation as a key
strategy to meet local clean energy goals and projected greenhouse gas reduction targets; and
WHEREAS, the Board of Supervisors of Alameda County directed the Alameda County
Community Development Agency (CDA) to determine if a Community Choice Aggregation (CCA)
program is feasible for cities in Alameda County; and
WHEREAS, CDA staff prepared a "Technical Study for Community Choice Aggregation
Program in Alameda County" (Technical Study, July 2016); and
WHEREAS, taken comprehensively, the Technical Study suggests that an Alameda County
CCA would be feasible, could operate economically, could provide ratepayers reductions on their
electric bills, and could both increase renewable energy and reduce greenhouse gas emissions if the
right balance is achieved by a joint powers agreement; and
WHEREAS, if a municipality is to form a CCA with other municipalities, it must become a part
of a Joint Powers Agency (JPA) as required by the legislation that permits CCAs; and
WHEREAS, a draft JPA Agreement has been prepared by the Office of the County Counsel
and has been reviewed by City Attorneys of Alameda County cities and the membership of the
Steering Committee over the course of several months.
Reso No. 168 -16, Adopted 11/15/2016, Item No. 7.1 Page 1 of 2
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Dublin does
hereby approve the agreement titled "East Bay Community Energy Authority - Joint Powers
Agreement" in order to participate with other prospective signatories in a Community Choice
Aggregation JPA for Alameda County municipalities, and authorizes the City Manager or his designee
to execute the agreement.
vote
PASSED, APPROVED AND ADOPTED this 15th day of November 2016 by the following
AYES: Councilmembers Biddle, Hart, Gupta and Wehrenberg
NOES:
ABSENT: Mayor Haubert
ABSTAIN: "i
Mayor Pro Tem re
ATTEST:
City Clerk
Reso No. 168 -16, Adopted 11/15/2016, Item No. 7.1 Page 2 of 2
ORDINANCE NO. 13 —16
AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING THE IMPLEMENTATION OF A
COMMUNITY CHOICE AGGREGATION PROGRAM
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby finds and declares:
A. The County of Alameda ( "County ") has been actively investigating options to provide electricity
supply services to constituents within the County with the intent of achieving greater local
involvement over the provision of electricity supply services, competitive electric rates, the
development of local renewable energy projects, reduced greenhouse gas emissions, and the
wider implementation of energy conservation and efficiency projects and programs.
B. Assembly Bill 117, codified as Public Utilities Code Section 366.2 (the "Act "), authorizes any
California city or county whose governing body so elects, to combine the electricity load of its
residents and businesses in a community wide electricity aggregation program known as
Community Choice Aggregation ( "CCA ").
C. The Act allows a CCA program to be carried out under a joint powers agreement entered into
by entities that each have capacity to implement a CCA program individually. The joint power
agreement structure reduces the risks of implementing a CCA program by immunizing the
financial assets of participants. To this end, since 2014, the County has been evaluating a
potential CCA program for the County and the cities within Alameda County.
D. The County Board of Supervisors voted unanimously in June of 2014 to allocate funding to
explore the creation of a CCA Program and directed County staff to undertake the steps
necessary to evaluate its feasibility. To assist in the evaluation of the CCA program within
Alameda County, the County established a Steering Committee in 2015, that has met monthly,
advising the Board of Supervisors on the possibility of creating a CCA Program.
E. The Technical Feasibility Study completed in June of 2016 shows that implementing a
Community Choice Aggregation program would likely provide multiple benefits to the citizens
of Alameda County, including the following:
1. Providing customers a choice of power providers;
2. Increasing local control over energy rates and other energy - related matters;
3. Providing electric rates that are competitive with those provided by the incumbent utility;
4. Reducing greenhouse gas emissions arising from electricity use;
5. Increasing local and regional renewable generation capacity;
6. Increasing energy conservation and efficiency projects and programs;
7. Increasing regional energy self- sufficiency; and
8. Encouraging local economic and employment benefits through energy conservation and
efficiency projects.
Ord No. 13 -16, Adopted 12/06/2016, Item No. 4.2 Page 1 of 3
F. Representatives from the County and Alameda County cities have developed the East Bay
Community Energy Authority Joint Powers Agreement ( "Joint Powers Agreement "). The Joint
Powers Agreement creates the East Bay Community Energy Authority ( "Authority "), which will
govern and operate the CCA program. The County and the Alameda County cities that elect
to participate in the CCA Program shall do so by approving the execution of the Joint Powers
Agreement and adopting an ordinance electing to implement a CCA Program, as required by
Public Utilities Code Section 366.2(c)(12).
G. The Authority will enter into agreements with electric power suppliers and other service
providers and, based upon those agreements, the Authority plans to provide electrical power to
residents and businesses at rates that are competitive with those of the incumbent utility.
Upon the California Public Utilities Commission approving the implementation plan prepared
by the Authority, the Authority can provide service to customers within it member jurisdictions.
Under Public Utilities Code Section 366.2, customers have the right to opt -out of a CCA
program and continue to receive service from the incumbent utility. Customers who wish to
continue to receive service from the incumbent utility will be able to do so at any time.
SECTION 2. Based upon the findings set forth in Section 1, the City elects to implement a
Community Choice Aggregation program within Alameda County by and through the City's
participation in the East Bay Community Energy Authority.
SECTION 3. CEQA
The City Council finds, under Title 14 of the California Code of Regulations, Section 15061(b)(3), that
this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) in
that it is not a Project which has the potential for causing a significant effect on the environment. The
City Council therefore directs that a Notice of Exemption be filed with the Alameda County Clerk in
accordance with the CEQA guidelines.
SECTION 4. SEVERABILITY
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held by a
court of competent jurisdiction to be invalid, such a decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Dublin hereby declares that it
would have passed this ordinance and each section or subsection, sentence, clause and phrase
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or
phrases be declared invalid.
SECTION 5. EFFECTIVE DATE AND POSTING OF ORDINANCE
This Ordinance shall take effect and will be enforced thirty (30) days from and after the date of the
passage. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three
(3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of
the State of California.
Ord No. 13 -16, Adopted 12/06/2016, Item No. 4.2 Page 2 of 3
The foregoing ordinance was introduced before the City Council of the City of Dublin at the regular
meeting of the City Council, held on the 15th day of November 2016, and finally adopted at a regular
meeting of the City Council held on the 6th day of December 2016, by the following vote:
AYES: Councilmembers Biddle, Gupta, Hart, Wehrenberg and Mayor Haubert
NOES:
ABSENT:
ABSTAIN: IJ4—
Mayo
ATTEST: APPROVED TO FORM AS:
epfy City Clerk City Attorney
Ord No. 13 -16, Adopted 12/06/2016, Item No. 4.2 Page 3 of 3